COM/MP1/lil Date of Issuance 5/30/2012

Decision 12-05-036 May 24, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Rulemaking 10-05-004 (Filed May 6, 2010)

DECISION REGARDING CALCULATION OF
THE NET ENERGY METERING CAP

1. Summary

The "Net Energy Metering cap," as established in Public Utilities Code Section 2827(c)(1), limits the availability of electric utility Net Energy Metering programs to eligible customer-generators in the utility service territory on a first-come-first-served basis until the total rated generating capacity used by eligible customer-generators exceeds five percent of the utility's "aggregate customer peak demand." This decision clarifies the denominator of the equation, defined in the statute as "aggregate customer peak demand," that Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas and Electric Company should use to calculate the five percent net energy metering cap.

By this decision, the Commission clarifies that "aggregate customer peak demand" means the aggregation, or sum, of individual customers' peak demands, i.e., their non-coincident peak demands.